Everything You Need to Know About the Proposed Victorian Stamp Duty Changes

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The Victorian Government has recently announced massive proposed changes to the First Home Owners Grant and Stamp Duty in Victoria. So what does this mean for you?

Image via: http://bluewaveproperty.com.au/stamp-duty-explained/

If passed in the May State Budget, from July 1, 2017, first home buyers purchasing properties valued below $600,000 will be exempt from paying stamp duty. Furthermore, first home purchases valued between $600,000 and $750,000 will receive a reduction applied on a sliding scale.

The new changes will be available for both new and established home purchases.

The Government also announced that it intends to increase the First Home Owner Grant from $10,000 to $20,000 for new homes built in regional Victoria valued up to $750,000.

These new changes give first home buyers in Victoria a helping hand by reducing the upfront costs of purchasing a home. They make the seemingly grim process  just that little bit easier for those wanting to break up in to the market, but dreading the ever rising house prices.

Stamp Duty Changes

Now for the nitty gritty:

  1. The exemption and concession are available for new and established home purchases and will be applicable to contracts signed from 1 July 2017
  2. The home must have a dutiable amount of less than $600,000 to receive a stamp duty exemption.
  3. A concession applies on a sliding scale for purchases with a dutiable amount between $600,000 and $750,000.
  4. The dutiable amount of a property is generally the greater of the purchase price or market value, minus any deductions (such as a deduction for an off-the-plan the purchase).
  5. The purchaser and the purchaser’s partner must be first home buyers, consistent with the definition under the First Home Owner Grant Act 2000.
  6. The purchaser must be an Australian citizen or permanent resident (New Zealanders holding a special category visa are considered permanent residents if they are in Australia at the time of settlement).
  7. The purchased property must be used as the purchaser’s principal place of residence for a continuous period of 12 months, commencing within 12 months of possession of the purchased property.

Duty Savings for first home buyers

If you’d like to get your finances in order and take advantage of these savings ASAP, contact SFE today!

Information taken from http://www.sro.vic.gov.au/housing